Amendment vs bill Senate Amendment 001 vs Engrossed

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HB4248 Engrossed LRB104 16598 SPS 29998 b AN ACT concerning business.
*LRB10416598SPS38653a* Sen.
Be it enacted by the People of the State of Illinois, represented in the General Assembly:
Robert Peters Filed:
Section 1.
5/31/2026 10400HB4248sam001 LRB104 16598 SPS 38653 a AMENDMENT TO HOUSE BILL 4248 AMENDMENT NO.
______.
Amend House Bill 4248 by replacing everything after the enacting clause with the following:
"Section 1.
This Act may be cited as the Algorithmic Pricing Prohibition Act.
This Act may be cited as the Protection from Surveillance Pricing Act.
Legislative findings.
The General Assembly finds and declares:
(1) Consumers increasingly purchase goods and services from businesses that collect and process browsing behavior, geolocation data, purchase history, and other personal data.
(2) Businesses use automated systems and data-driven algorithms to generate prices that may vary among consumers for the same goods or services.
(3) These practices, sometimes referred to as "surveillance pricing", may limit a consumer's ability to comparison-shop and may enable pricing based on a consumer's perceived willingness to pay.
(4) Prohibiting these practices is necessary to promote fair dealing, consumer protection, and market integrity.
Section 10.
HB4248 Engrossed - 2 - LRB104 16598 SPS 29998 b "Algorithmic pricing" means a price for consumer goods or services generated, in whole or in part, using an automated decision system, machine-learning model, or data-driven algorithm.
"De-identified data" means data that does not identify and cannot reasonably be used to infer information about, or otherwise be linked to, an identified or identifiable individual, or a device linked to the individual, if the controller that possesses the data:
"Consumer" means a natural person who is an Illinois resident acting only in an individual or household context.
(1) takes reasonable physical, administrative, and technical measures to ensure that the data cannot be associated with an individual or be used to re-identify any individual or device that identifies or is linked or reasonably linkable to an individual;
"Covered entity" means any person or entity that sells or offers to sell consumer goods or services to consumers in this State.
10400HB4248sam001 -2- LRB104 16598 SPS 38653 a (2) publicly commits to process the data only in a de-identified fashion and not attempt to re-identify the data;
"Personal data" means information linked or reasonably linkable to a specific consumer, including, but not limited to, browsing history, search queries, geolocation data, prior purchases, digital identifiers, or demographic profile data.
and (3) contractually obligates any recipients of the data to satisfy the requirements set forth in paragraphs (1) and (2) of this definition.
"Personalized price" means a price for consumer goods or services that is set for a consumer based on the consumer's personal data.
"Loyalty program" means a program that rewards consumers for repeat purchases, in which a consumer has separately and affirmatively enrolled prior to the point of sale, through a distinct enrollment process that is not bundled with or conditioned upon any individual purchase transaction.
"Surveillance pricing" means algorithmic pricing that uses a consumer's personal data to generate a personalized price.
"Person" means a natural person or an entity, including, but not limited to, a corporation, partnership, association, trust, limited liability company, cooperative, or other organization.
"Personal data" means any information, including unique identifiers, that is linked or reasonably linkable, alone or in combination with other information, to an identified or identifiable individual or a device that identifies or is linked or reasonably linkable to an individual.
"Personal data" does not include de-identified data.
"Surveillance pricing" means offering or setting a customized price for goods or services for a specific consumer or group of consumers based, in whole or in part, on personal data.
"Surveillance pricing" includes, but is not limited to, the use of technological methods, systems, or tools, such as 10400HB4248sam001 -3- LRB104 16598 SPS 38653 a sensors, cameras, device tracking, or other forms of observation or data collection, that are capable of gathering personal information about a consumer's behavior, characteristics, location, or other personal attributes.
"Surveillance pricing" also includes offering random variations in prices to different customers using a website, mobile application, or comparable online technology.
"Surveillance pricing" does not include a discounted price offered to a consumer terminating or taking steps to terminate a service or membership with a person.
Section 10.
Ban on surveillance pricing.
(a) Except as provided in subsection (b), a person shall not engage in surveillance pricing.
(b) A person does not engage in surveillance pricing if the person can demonstrate that:
(1) The difference in pricing is based solely on different costs associated with providing the goods or services to different consumers, including variations in taxes, fees, and assessments imposed by federal, State, or local law, and differences in shipping or delivery costs.
(2) The difference in pricing is due to generally applicable price fluctuations over time.
(3) The difference in pricing is based solely on the offer of a good faith credit, refund, rebate, or discount issued in response to:
10400HB4248sam001 -4- LRB104 16598 SPS 38653 a (A) a service disruption, error, or other failure to deliver a good or service as promised or expected;
(B) a billing dispute;
or (C) a request for cancellation.
(4) The difference in pricing is based on publicly disclosed eligibility criteria that any consumer could potentially meet, including, but not limited to, signing up for a mailing list, registering for promotional communications, or participating in a promotional event and all differences in pricing and the terms and criteria for receiving the differences in pricing are conveyed clearly and conspicuously and are disclosed in clear and prominent terms on the company's website.
(5) The difference in pricing is offered or provided to a commonly understood social grouping, such as teachers, veterans, senior citizens, or students, if:
(A) all the differences in pricing and the terms and criteria for receiving the differences in pricing are publicly available, are disclosed and conveyed clearly and conspicuously on the company's website;
and (B) any consumer can obtain the difference in price if the consumer can demonstrate that the consumer is part of the group.
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(6) The difference in pricing is offered as part of a loyalty, membership, or rewards program if:
10400HB4248sam001 -5- LRB104 16598 SPS 38653 a (A) the price difference is available to any consumer who participates in the loyalty, membership, or rewards program and meets the publicly disclosed terms, eligibility criteria, or conditions, and prices are not individualized for consumers as part of the program;
the consumer consents to participate in the program;
and the program may offer discounts or promotional benefits under its terms and conditions if participation in the program does not result in the consumer paying a higher price than the price otherwise available;
(B) current discounts, promotions, rewards, or any other benefits provided to loyalty program members, and the conditions that must be met before obtaining them, are disclosed clearly and conspicuously on equal terms on the company's website;
and (C) any loyalty, membership, or rewards program that allows a user to accrue and exchange points, credits, or any similar nonmonetary system of value for a product or service does not charge a different price for those points, credits, or similar nonmonetary system of value to different consumers for the same or substantially similar product or service.
(7) That a refusal to extend credit at specific terms or the refusal to enter into a transaction with a specific consumer is based on data provided in a consumer report 10400HB4248sam001 -6- LRB104 16598 SPS 38653 a covered by the federal Fair Credit Reporting Act.
(8) That the person operates as a bank, savings bank, credit union, or any financial institution certified, permitted, approved, chartered, registered, licensed, or otherwise authorized to engage in any profession, trade, occupation, or industry by the Division of Banking or the Division of Financial Institutions of the Department of Financial and Professional Regulation.
(c) This Act does not apply to an air carrier that provides air transportation, as those terms are used in 49 U.S.C.
41713.
(d) This Act does not apply to the pricing of insurance or insurance-related products issued by a risk-bearing entity under an Act administered by the Department of Insurance, unless the surveillance pricing is used to price the product based on a consumers willingness to pay or limits a consumer's ability to comparison shop.
Surveillance pricing prohibition.
Enforcement.
A covered entity shall not engage in surveillance pricing.
(a) The Attorney General or the State's Attorney of any county in this State may bring an action in the name of the People of this State against any person to restrain and prevent any pattern or practice in violation of Section 10.
In the enforcement of Section 10, the Attorney General or the State's Attorney may accept an assurance of voluntary compliance from anyone engaged in any conduct, act, or 10400HB4248sam001 -7- LRB104 16598 SPS 38653 a practice deemed in violation of Section 10.
The failure to perform the terms of any such assurance constitutes prima facie evidence of a violation of Section 10.
(b) A violation of Section 10 constitutes an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act.
All remedies, penalties, and authority granted to the Attorney General or the State's Attorney by the Consumer Fraud and Deceptive Business Practices Act shall be available to the Attorney General or the State's Attorney for the enforcement of Section 10.
Application of law.
Action for actual damages.
(a) This Act does not apply to price changes that are the result of:
Any person who suffers actual damage as a result of a violation of Section 10 may bring an action under Section 10a of the Consumer Fraud and Deceptive Business Practices Act.
(1) fluctuations in the cost of acquiring, producing, HB4248 Engrossed - 3 - LRB104 16598 SPS 29998 b transporting, or distributing inventory, including, but not limited to, changes in wholesale prices, manufacturing costs, labor, insurance, or other input costs associated with providing goods or services to different consumers;
(2) objective cost differences directly related to the provision, supply, or sale of goods or services to consumers in different geographic areas, market regions, or delivery locations, including, but not limited to, reasonable variations reflecting the costs or conditions associated with serving particular areas or responding to differing levels of supply or demand;
(3) supply chain disruptions, including, but not limited to, delays, shortages, allocation by suppliers, changes in shipping modes or routes, or other logistical constraints that reasonably affect the seller's costs or available quantities;
(4) time-limited sales, promotions, or discounts that are offered in good faith and in the usual course of the seller's business, including introductory pricing, seasonal or clearance sales, and advertised promotional events;
(5) the imposition, repeal, or adjustment of any tax, fee, surcharge, or assessment imposed by federal, State, or local law, or any pass-through of such amounts to the consumer;
(6) variations in shipping, delivery, or handling HB4248 Engrossed - 4 - LRB104 16598 SPS 29998 b costs, including fuel surcharges and carrier rate changes, and any pass-through of such costs to the consumer;
(7) application of any discounts, coupons, promotional offers, rebates, limited-time sales, loyalty or club member pricing, price comparison tools, competition price matching or other reductions or incentives offered to the consumer, including differentiated pricing based on participation in the programs, or accumulation or redemption of rewards;
(8) special discount programs, including differentiated pricing offered to individuals who meet publicly disclosed eligibility criteria, such as teachers, employees, active-duty or retired military personnel, senior citizens, and students;
(9) any fees, surcharges, or other charges that are imposed or set by third parties, including payment processors, delivery platforms, or other intermediaries, and any pass-through of such amounts to the consumer;
(10) differential prices that are offered or provided to a consumer as a good faith credit, refund, rebate, or discount issued in response to:
(A) a service disruption, error, or other failure to deliver a good or service as promised or expected;
(B) a billing dispute or discrepancy;
(C) a request for account retention or cancellation;
or HB4248 Engrossed - 5 - LRB104 16598 SPS 29998 b (D) any other customer service interaction in which the person provides a credit, refund, rebate, or discount to address a consumer's concerns or to maintain the consumer relationship.
(b) This Act does not apply to algorithmic pricing models that do not use personal data, including models based on aggregate market demand, which includes changes in market demand, competitive conditions, and the seller's cost structure.
(c) This Act does not apply to the use of consumer personal data for purposes of determining creditworthiness or underwriting a consumer's ability to repay.
(d) This Act does not apply to the pricing of any contract or policy of insurance that is subject to rules regarding pricing to consumers adopted by the Department of Insurance, including a surety contract, a dental service plan, a health care plan, a limited health care plan, or a voluntary health services plan.
(e) This Act does not apply to any provider of financial services, including a financial institution, a financial institution affiliate, a broker-dealer, a registered investment advisor, or an entity that provides consumer credit products, such as credit cards, personal loans, and mortgages, that is subject to rules adopted by the Department of Financial and Professional Regulation or rules or regulations adopted by any federal financial regulatory agency regarding HB4248 Engrossed - 6 - LRB104 16598 SPS 29998 b pricing or disclosures, including terms disclosed to consumers.
Enforcement by Attorney General.
Waiver void and unenforceable.
(a) The Attorney General may investigate a claim that a person violated this Act, including the following:
Any waiver of the provisions of this Act is void and unenforceable as contrary to public policy.
(1) require persons to file, on such terms as the Attorney General prescribes, a statement or report in writing under oath or otherwise, as to all information as the Attorney General may consider necessary;
(2) examine under oath any person in connection with the conduct of any trade or commerce;
(3) examine any merchandise or sample thereof, record, book, document, account, or paper as the Attorney General may consider necessary;
and (4) pursuant to an order of a circuit court, impound any record, book, document, account, paper, or sample of merchandise that is produced in accordance with this Act, and retain it in the Attorney General's possession until the completion of all proceedings in connection with which it is produced.
(b) The Attorney General may bring an action in the name of the People of this State to restrain or enjoin by preliminary or permanent injunction the person from violating this Act.
(c) In addition to bringing an action for injunctive relief under this Section, the Attorney General may seek HB4248 Engrossed - 7 - LRB104 16598 SPS 29998 b restitution and petition a circuit court for the assessment of a civil penalty as provided by this Section.
(d) A person who violates this Act is liable for a civil penalty of not more than $50,000 for each violation.
(e) The Attorney General may recover all reasonable costs of bringing an action under this Section, including court costs, reasonable attorney's fees, and investigation costs.
The regulation of algorithmic pricing, surveillance pricing, or any other similar pricing mechanism is an exclusive power and function of the State.
A home rule unit may not regulate surveillance pricing in a manner inconsistent with the regulation by the State of surveillance pricing under this Act.
A home rule unit may not regulate algorithmic pricing, surveillance pricing, or any other similar pricing mechanism.
This Section is a limitation under subsection (i) of Section 6 of Article VII of the Illinois Constitution on the concurrent exercise by home rule units of powers and functions 10400HB4248sam001 -8- LRB104 16598 SPS 38653 a exercised by the State.
This Section is a denial and limitation of home rule powers and functions under subsection (h) of Section 6 of Article VII of the Illinois Constitution.
Section 90.
Section 35.
The Consumer Fraud and Deceptive Business Practices Act is amended by adding Section 2MMMM as follows:
Relation to other laws.
(815 ILCS 505/2MMMM new) Sec.
Nothing in this Act shall be construed to limit any federal or State law.
2MMMM.
Violations of the Protection from Surveillance Pricing Act.
Any person who violates Section 10 of the Protection from Surveillance Pricing Act commits an unlawful practice within the meaning of this Act.".